Click here for Fiscal Note

This information is prepared as an informational service only and should not be relied upon as an official record of action taken by the Colorado General Assembly.

Second Regular Session

Sixty-first General Assembly

LLS NO. 98­0115.01 JAG HOUSE BILL 98­1100

STATE OF COLORADO

BY REPRESENTATIVES Salaz, Arrington, Epps, Lawrence, McElhany, Musgrave, Paschall, Sinclair, and T. Williams;

also SENATOR Lamborn. REENGROSSED

FINANCE

A BILL FOR AN ACT

CONCERNING THE REDUCTION OF THE STATE INCOME TAX RATE.


Bill Summary

(Note: This summary applies to this bill as introduced and does not necessarily reflect any amendments that may be subsequently adopted.)

Lowers the state income tax rate imposed on individuals, estates, trusts, domestic C corporations, and foreign C corporations doing business in Colorado from 5% to 4 :% for income tax years commencing on or after January 1, 1998. Refers the question of such income tax rate reduction to the electors of Colorado at the next general election.


Be it enacted by the General Assembly of the State of Colorado:

SECTION 1.  39­22­104 (1), Colorado Revised Statutes, is amended, and the said 39­22­104 is further amended BY THE ADDITION OF A NEW SUBSECTION, to read:

39­22­104.  Income tax imposed on individuals, estates, and trusts ­ single rate.  (1)  Subject to subsection (2) of this section, with respect to taxable years commencing on or after January 1, 1987, BUT PRIOR TO JANUARY 1, 1998, a tax of five percent is imposed on the federal taxable income, as determined pursuant to section 63 of the internal revenue code, of every individual, estate, and trust.

(1.5)  SUBJECT TO SUBSECTION (2) OF THIS SECTION, WITH RESPECT TO TAXABLE YEARS COMMENCING ON OR AFTER JANUARY 1, 1998, A TAX OF FOUR AND THREE­QUARTERS PERCENT IS IMPOSED ON THE FEDERAL TAXABLE INCOME, AS DETERMINED PURSUANT TO SECTION 63 OF THE INTERNAL REVENUE CODE, OF EVERY INDIVIDUAL, ESTATE, AND TRUST.

SECTION 2.  39­22­301 (1) (d) (I) (G), Colorado Revised Statutes, is amended, and the said 39­22­301 (1) (d) (I) is further amended BY THE ADDITION OF A NEW SUB­SUBPARAGRAPH, to read:

39­22­301.  Corporate tax imposed. (1) (d) (I)  A tax is imposed upon each domestic C corporation and foreign C corporation doing business in Colorado annually in an amount of the net income of such C corporation during the year derived from sources within Colorado as set forth in the following schedule of rates:

(G)  For income tax years commencing on or after July 1, 1993, BUT PRIOR TO JANUARY 1, 1998, five percent of the Colorado net income.

(H)  FOR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY 1, 1998, FOUR AND THREE­QUARTERS PERCENT OF THE COLORADO NET INCOME.

SECTION 3.  Effective date.  This act shall take effect at 12:01 a.m. on the day following the expiration of the ninety­day period after final adjournment of the general assembly that is allowed for submitting a referendum petition pursuant to article V, section 1 (3) of the state constitution; except that, if a referendum petition is filed against this act or an item, section, or part of this act within such period, then the act, item, section, or part, if approved by the people, shall take effect on the date of the official declaration of the vote thereon by proclamation of the governor.